Basis of preparationBasis of preparation

Basis of preparation

The nature of the disclosure and format of this form may not be strictly consistent with the annual financial statements prepared by the institution. Notwithstanding this, in completing this form (unless otherwise specifically stated for individual items of assets, liabilities or equity), institutions are requested to follow the basis that is used for the preparation of its annual financial statements in accordance with the Australian accounting standards, specifically in regard to the:

• interpretation/definition of specific asset, liability and equity items;
• appropriate measurement basis for asset, liability and equity items; and
• netting of financial assets and financial liabilities.

If additional clarification is required for specific asset, liability or equity items in ARF 322.0, reference should be made to the instructions provided for ARF 320.0 Statement of Financial Position (Domestic Books), ARF 321.0 Statement of Financial Position (Offshore Operations) and ARF 323.0 Statement of Financial Position (Licensed ADI) as appropriate.

Specific instructions

Section D: Additional information required by APRA

1. to 5.

Provide a summary of financial assets and liabilities balances categorised in accordance with AASB 139.

In item 1, financial assets available-for-sale include as part of loans and advances those “tainted” held-to-maturity investments that can no longer be classified as held-to-maturity investments.

6. Reconciliation of loan loss provisions

This section reconciles the amounts disclosed as loan loss provisions under International Financial Reporting Standards[5] with APRA reporting on a gross basis. Parts of the Specific Provisions and General Reserve for Credit Losses (as defined by Prudential Standard APS 220 Credit Quality) may have come only from collective provisions or may have been created only for prudential purposes.